In an upcoming Corporate Management Day (CMD), 888 Holdings PLC will provide a comprehensive overview of its strategy and priorities following the successful acquisition of the non-US assets of William Hill in July 2022. The CMD will feature presentations from the executive leadership team, highlighting the company’s updated growth opportunities, financial targets, and cost synergies.
New Financial Targets for 2025:
During the CMD, 888 will present ambitious financial targets for 2025, demonstrating the company’s determination to drive growth and enhance profitability. These targets include:
Revenue: 888 aims to achieve revenue surpassing £2 billion ($2.4 billion) by 2025. This signifies a strong focus on expanding its market presence and capitalizing on favorable opportunities.
Adjusted EBITDA Margin: The company targets an adjusted EBITDA margin of over 23%. This emphasis on profitability showcases 888’s commitment to optimizing its operational efficiency and maximizing returns.
Adjusted Net Debt/EBITDA: 888 aims to maintain an adjusted net debt/EBITDA ratio of less than 3.5x. This prudent financial goal reflects the company’s intention to manage its debt levels responsibly, considering potential market challenges.
Accelerated Cost Synergies:
888 plans to announce an acceleration and increase in anticipated cost synergies resulting from the integration of William Hill’s non-US assets. The company has raised the pre-tax cost synergy target to approximately £150 million, emphasizing its commitment to extracting significant benefits from the combination.
Furthermore, 888 anticipates achieving approximately £87 million in operating cost synergies in 2023, reflecting an accelerated delivery timeline. This focus on synergy realization demonstrates the company’s drive to streamline operations and generate efficiencies within the organization.
Strategic Direction and Priorities:
888 CEO Itai Pazner emphasized the importance of unlocking the full potential of the merged entity. The company’s strategic direction and priorities revolve around the following key areas:
Customer-Led Business: 888 aims to develop a customer-centric approach, focusing on providing exceptional experiences across its portfolio of world-class brands. This customer excellence strategy aligns with its objective of capturing market share in attractive betting and gaming markets globally.
Unified Technology Stack: The company plans to leverage a scalable and unified proprietary technology stack. This advanced infrastructure will underpin 888’s product and content leadership, enabling it to deliver innovative solutions and maintain a competitive edge in the industry.
Integration and Efficiency: Over the next two years, 888 will concentrate on fully integrating its business to create a stronger and more efficient organization. By optimizing its operating model, the company aims to enhance profit margins and capitalize on growth opportunities.
Addressing External Changes:
888 acknowledges significant external changes since the acquisition of William Hill’s non-US assets. These changes include a more challenging operating environment, increased exposure to interest rate fluctuations due to the current debt levels, and moderate growth rates across key online markets.
Pazner emphasized the exciting long-term potential of 888, highlighting the future growth opportunities that lie ahead. Building a unified tech platform will enable the company to leverage its world-class brands, product and content leadership, and customer excellence, positioning itself for sustained growth in the next decade.
The CMD serves as a platform for 888 Holdings PLC to present its strategic vision, financial targets, and integration plans following the acquisition of William Hill’s non-US assets. The company’s focus on revenue growth, profitability, and cost synergies demonstrates its commitment to creating a stronger and more efficient organization. By prioritizing customer satisfaction and leveraging advanced technology, 888 aims to solidify its position as a leader in the global betting and gaming markets. Despite external challenges, the company remains optimistic about its long-term prospects and potential for future growth.